The Association of Investment Bankers of India is asking market regulators to permanently raise the fresh fundraising revision threshold from 20% to 50%. While temporary relief permitting a 50% change is currently extended through March 2027, bankers want this parity with offer-for-sale limits codified into permanent law. Multiple companies have recently pared back their listing ambitions amid uncertain investor appetite, making flexibility essential. Under the expanded framework, lead managers must continue to certify compliance while ensuring the core objectives of the issue remain unaltered.
Key points
Investment bankers want the permanent 50% adjustment threshold to match existing rules go…: Investment bankers want the permanent 50% adjustment threshold to match existing rules governing offer-for-sale transactions.
A permanent revision limit would prevent disruptive listing delays caused by volatile mar…: A permanent revision limit would prevent disruptive listing delays caused by volatile market conditions and valuation fluctuations.
The Securities and Exchange Board of India met with the investment banking association we…: The Securities and Exchange Board of India met with the investment banking association weeks ago but has yet to reach a final decision.
Sources checked by our analysis pipeline: 1
The Securities and Exchange Board of India (Sebi) and the Association of Investment Bankers of India (AIBI) are discussing a revision in fundraising norms to ease the threshold for changes to the issue size of initial public offerings (IPO), according to two people privy to the discussions.
“AIBI has made a representation to Sebi to change the 20% threshold for the filing of a fresh DRHP (draft red herring prospectus) in case there are changes in the issue size for fresh fund raises. We have discussed this with the regulator. However, there has not been any final decision yet,” one person said on condition of anonymity.
Currently, a company seeking to raise capital through an IPO must file a new DRHP if the issue size changes by more than 20%, although the regulator has temporarily eased the threshold until March 2027. The threshold for an offer for sale (OFS), in which existing shareholders sell their shares, is 50%.
“AIBI has made a representation to change the 20% threshold to 50%, which would make it at par with OFS issuances. The…
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